EDITORIAL: Georgia’s Underground or Shadow Economy
Out-of-State Money Wire Transfer Fee bill
By State Representative Jeff Jones (R-Brunswick)
The United States has a massive underground economy – reportedly over $1 trillion. This economy, referred to as our cash economy, includes cash transactions by drug dealers, prostitution rings and workers paid in cash for their labor. Georgia is not immune to this issue. Our state loses millions of dollars of legitimate tax revenue as do other states and the federal government as a result of this problem.
The Out-of-State Money Wire Transfer Fee bill, which I will introduce during the 2017 legislative session, proposes that wire transfer companies shall collect a fully refundable fee on out-of-state wire transfers. To be clear, this fee is 100 percent reimbursable as a tax credit when an individual files their annual Georgia Income Tax, or when the individual provides the proper paperwork. The bill also proposes that the wire transfer companies will receive compensation, similar to the “vendor compensation” paid by the Department of Revenue to vendors for their sales tax collection and reporting efforts.
According to unofficial estimates, money wire transfer fee legislation could generate between $30 and $40 million in net revenue annually in the State of Georgia after eligible individuals receive their 100 percent fee reimbursement.
Representative Jeff Jones represents the citizens of District 167, which includes portions of Glynn, Long, and McIntosh counties. He was first elected into the House of Representatives in 2014, and currently serves on the Interstate Cooperation, Motor Vehicles, and Natural Resources & Environment committees.
Posted September 26th, 2016 in Jeff Jones. Tagged: State Representative Jeff Jones.